Phillips 66 to build LPG export terminal in Texas

The proposed terminal would provide 4.4 million bbl/monthof LPG export capacity, the equivalent of eight very large gas carriers (VLGC). It would be located at the site of the company’s existing marine terminal in Freeport and utilize existing Phillips 66 midstream, transportation and storage infrastructure.

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Phillips 66 is planning to develop a liquefied
petroleum gas (LPG) export terminal in Freeport, Texas, the
company announced on Thursday.

The new terminal is intended to help meet growing global market
demand for US-supplied products.

We are looking at a rapidly changing energy landscape
that presents excellent opportunities in the natural gas
liquids (NGL) piece of our midstream business, said Tim
Taylor, Phillips 66 executive vice president for commercial,
marketing, transportation and business development.

A liquefied petroleum gas terminal downstream of our
Sweeny complex supports our growth strategy in midstream and
builds on our strong record of operating excellence, and there
are attractive markets outside of the United States for
products like butane and propane," he added.

The proposed LPG export terminal would provide 4.4 million
bbl/month of LPG export capacity, the equivalent of eight very
large gas carriers (VLGC). It would be located at the site of
the companys existing marine terminal in Freeport and
utilize existing Phillips 66 midstream, transportation and
storage infrastructure to supply petrochemical, heating and
transportation markets globally.

Phillips 66 says it is the only independent energy
company with leading segments in midstream, chemicals, refining and marketing and
specialties. Its midstream segment transports crude oil,
refined products, natural gas and NGL. It also gathers natural
gas and NGL, and through its midstream NGL business processes
these feedstocks to power businesses, heat
homes and provide raw materials to the petrochemical industry.

Phillips 66 owns fractionation capacity at Gulf Coast
Fractionators (GCF) and the Enterprise Mont Belvieu
fractionator in Texas, as well as the Conway fractionator in
Kansas. Phillips 66 is the operator of the GCF facility.

The Freeport LPG export terminal would be supplied with LPG
from the Mont Belvieu area and from Phillips 66s Sweeny
complex at Old Ocean, Texas, including its recently announced
Sweeny Fractionator One, which is expected to start up by the
second half of 2015.

The export terminal project is currently in the
engineering design phase, which includes the process of filing
for all applicable permits. Final project approval is anticipated
during the first half of 2014, with startup planned for the
middle of 2016.

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